2.13 Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Provisions in the nature of long term are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision
due to the passage of time is recognised as interest expense.
2.14 Borrowings.
Borrowings are recognized initially at fair value, less attributable transaction costs. Subsequent to initial recognition, interest-bearing
borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the statement of
profit or loss over the period of the borrowings using the effective interest method.
2.15 Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand, short-term deposits and highly liquid investments with an original
maturity of three months or less which are readily convertible in cash and subject to insignificant risk of change in value.
2.16 Earnings Per Share
Earnings per share is calculated by dividing the Profit after tax by the weighted average number of equity shares outstanding during the year.
2.17 Contingent Liability and Contingent Assets
A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency dependent on
uncertain future events, or a present obligation where no outflow is probable. Major contingent liabilities are disclosed in the Financial
statements unless the possibility of an outflow of economic resources is remote. Contingent assets are not recognized in the Financial
statements but disclosed, where an inflow of economic benefit is probable.
2.18 Trade Receivables
Trade receivables are amounts due from customers for goods sold in the ordinary course of business. If collection is expected to be
collected within a period of 12 months or less from the reporting date, they are classified as current assets otherwise as non-current assets.
2.19 Financial Instruments
(i) Financial Assets
Initial Recognition and Measurement
All Financial assets are recognized initially at fair value plus, in the case of Financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the acquisition of the Financial asset.
Trade receivables that do not contain a significant financial component are measured at transaction price.
Financial assets are classified, at initial recognition, as Financial assets measured at fair value or as Financial assets measured at
amortized cost.
Subsequent Measurement
For purpose of subsequent measurement of Financial assets are classified in two broad categories:
• Financial Assets at fair value
• Financial assets at amortized cost
Where assets are measured at fair value, gains and losses are either recognized entirely in the statement of profit and loss , or
recognized in other comprehensive income.
A Financial asset that meets the following two conditions is measured at amortized cost.
• Business Model Test: The objective of the company’s business model is to hold the Financial asset to collect the contractual
cash flows.
• Cash flow characteristics test: The contractual terms of the Financial asset give rise on specified dates to cash flows that
are solely payment of principal and interest on the principal amount outstanding.
A Financial asset that meets the following two conditions is measured at fair value through OCI:
• Business Model Test: The Financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling Financial assets.
• Cash flow characteristics test: The contractual terms of the Financial asset give rise on specified dates to cash flows that
are solely payment of principal and interest on the principal amount outstanding.
All other Financial assets are measured at fair value through profit and loss.
All equity investments are measured at fair value in the balance sheet, with value changes recognized in the statement of profit
and loss, except for those equity investments for which the entity has elected irrevocable option to present value changes in OCI.
(ii) Financial Liabilities
All Financial liabilities are initially recognized at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. Financial liabilities are classified as measured at amortized cost or fair value through profit and
loss (FVTPL). A Financial liability is classified as FVTPL if it is classified as held for trading, or it is a derivative or is designated as
such on initial recognition. Financial Liabilities at FVTPL are measured at fair value and net gain or losses, including any interest
expense, are recognised in statement of profit and loss. Other Financial liabilities are subsequently measured at amortized cost
using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in statement of profit
and loss. Any gain or loss on de-recognition is also recognized in statement of profit and loss.
3 Use of Estimates
The preparation of Financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular,
information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the Financial statements is included in the following notes:
3.1 Property, Plant and Equipments
Property, Plant and Equipments represent a significant proportion of the asset base of the company. The management of the Company
makes assumptions about the estimated useful lives, depreciation methods or residual values of items of property, plant and equipment,
based on past experience and information currently available. In addition, the management assesses annually whether any indications
of impairment of tangible assets.
3.2 Trade Receivables
The management believe that the net carrying amount of trade receivables is recoverable based on their past experience in the market
and their assessment of the credit worthiness of debtors at Balance Sheet date. The provision is made against Trade Receivable based
on Expected Credit Loss model as per Ind AS-109.
3.3 Defined Benefit Plans
The provisions for defined benefit plans have been calculated by a actuarial expert. The basic assumptions are related to the mortality,
discount rate and expected developments with regards to the salaries. The discount rate have been determined by reference to market
yields at the end of the reporting period based on the expected duration of the obligation. The future salary increases have been
estimated by using the expected inflation plus an additional mark-up based on historical experience and management expectations.
3.4 Taxes
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against
which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and the level of future taxable profits.
3.5 Provisions and liabilities
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting
from past operations or events that can reasonably be estimated. The timing of recognition requires application of judgement to
existing facts and circumstances which may be subject to change. The amounts are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
3.6 Contingencies
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential
liabilities that are possible but not probable of crystalising or are very difficult to quantify reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but are not recognized.
a) Includes Rs.62.96 Lakh towards cost of premises,furniture & fixtures and air conditioners. Since separate breakup is not available,
therefore depreciation has been charged on total cost at Straight Line Method.
b) Effective 1st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful
life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April 2014 was depreciated over the revised
remaining useful life. Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant &
Zero Liquid Discharge plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies
Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs 193.00 Lakh (Previous year Rs. 190.78 Lakh)
instead of Rs. 193.40 Lakh (Previous Year Rs. 193.33 lakh), resulting in excess charge of depreciation during the year by Rs. 0.40 Lakh.
(Previous Year Rs. 2.55 Lakh).
c) i) Includes assets pertaining to Grain based Ethanol Plant capitalized on 25th March 2025.
ii) includes finance cost upto 25.03.2025 capitalized amounting to Rs. 974.57 Lakhs on term loan used for grain based Ethanol Plant.
Bracket represents adverse Variance.
Reason for Variance
Note 1. Debt-Equity Ratio & Debt Service Coverage Ratio: Variation due to increase in Term Loan availed for Grain based Ethanol Plant
and interest thereon.
2. Return on Equity, Net Profit Ratio & Return on Capital Employed: Favourable due to increase in profitability during the year.
36 Additional Regulatory Information
i) Title Deeds of all Immovable properties are held in the name of the company.
ii) The company does not have any investment in property.
iii) During the year the company has not revalued its property,plant and Equipment (including right -of-Use Assets)
iv) During the year the company has not revalued its intangible assets
v) During the year the company has not granted any Loan or advance in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that are:
a. repayable on demand : or
b. without specifying any terms or period of repayment,
vi) The company does not have Intangible assets under development
vii) No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
viii) The company has borrowings from banks or financial institiution on the basis of security of current assets and quarterly returns or
statement of current assets filed by the company with banks or financial institutions are generally in agreement with books of accounts.
ix) The company is not declared wilful defaulter by any bank or financial Institution or other lender.
x) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
xi) No charges or satisfaction yet to be registered with ROC beyond the statutory period.
xii) The compnay has complied with the number of layers prescribed under clause (87) of Section 2 of the act read with companies
(Restriction on number of layers) rule 2017.
xiii) During the year any Scheme of Arrangements has not been approved by the Competent Authority in terms of Sections 230 to 237
of the Companies Act, 2013.
xiv) Utilisation of Borrowed funds and share premium:-
A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the company shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
38. Financial risk management objectives and policies
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables . The main purpose of these
financial liabilities is to support its operations. The Company’s principal financial assets include investments, trade and other receivables,
and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk and credit risk. The Company’s management advises on financial risks and the appropriate
financial risk governance framework for the Company. The Company’s financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.
All derivative activities for risk management purposes are carried out by specialist that have the appropriate skills, experience and
supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors
reviews and agrees policies for managing each of these risks, which are summarised below:
i. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity
risk. Financial instruments affected by market risk include loans and borrowings, trade payables, deposits and investments.
ii. Foreign Currency Risk
The Company’s raw material are imported and is exposed to foreign exchange risk arising from foreign currency transactions,
primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and
liabilities denominated in a currency that is not Company’s functional currency (INR).
(iii) Credit risk
Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding
accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective
of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the
counterparties, taking into account their financial position, past experience and other factors.
39. Disclosure as required under IND AS 108- Operating Segments
Operating Segments:
a. Acrylic Fibre Division
b. Cast Polyproplyne Film Division (CPP Film)
c. Grain Based Ethanol Plant (capitalized on 25th March 2025)
Identification of Segments
The management monitors the operating results of its business segments separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with
profit and loss in the financial statements. The Operating segments have been identified on the basis of the nature of products.
Segment revenue and results
Expenses and Revenue that are directly identifiable with the segments are considered for determining the segment results. Expenses and
Revenue which relate to the Company as a whole and not allocable to segments are included under unallocable expenditure and revenue
respectively.
Segment assets and liabilities
Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities, if any,
represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.
42. Figures for the previous period have been regrouped / rearranged wherever considered necessary.
As per our report of even date annexed
For B.K. Shroff & CO., Deveshwer Kumar Kapila Vineet Jain
Chartered Accountants director Managing director
Reg. No. 302166E Din : 00179060 Din : 00107149
Kavita Nangia S.C. Malik Satish Kumar Bansal
Partner director Chief Financial Officer
Membership No. 090378 Din : 00107170
Place: New delhi Bharat Kapoor
date : 19th May, 2025 Company Secretary
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